BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 823 (Corbett)
          
          Hearing Date: 5/26/2011         Amended: 5/4/2011
          Consultant: Bob Franzoia        Policy Vote: Judiciary 3-2  
          B,P&ED 6-3
          _________________________________________________________________
          ____
          BILL SUMMARY: SB 823 would establish the Made in California 
          Program within the Governor's Office of Economic Development.  
          This bill would include in that list of acts representing a 
          product as made in California, by using a specified Made in 
          California label, unless the product complies with standards 
          adopted by the Governor's Office of Economic Development, to the 
          extent those standards are adopted.  This bill would create the 
          continuously appropriated Made in California Fund as a special 
          fund in the State Treasury.  This bill would require the office 
          to report to the Legislature on January 1, 2013, and annually 
          thereafter, regarding expenditures and progress of the program.  

          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Made in California Program        Up to $200 initially; future 
          administration         General*               and marketing 
          costs would be determined
                                 by continued General Fund support and 
                                 financial contribution of companies
                                 participating in the program     
                                                                  
          * Made in California Fund, a special fund, would not fund 
          initial costs
          _________________________________________________________________
          ____

          STAFF COMMENTS: SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.

          There is no source of funding identified for the Made in 
          California Fund established by this bill.  Presumably, the 
          program will operate similar to the "Buy California" program a 
          public and private collaboration within the Department of Food 
          and Agriculture.  That program received significant startup 








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          funding and now operates on industry self-assessments pursuant 
          to Food and Agricultural Code 58750 which authorizes the 
          Secretary of Agriculture to issue a marketing agreement with 
          those elements of the production agriculture and food processing 
          industry willing to participate in the program via co-funding or 
          in-kind contributions in a manner defined under the agreement.

          The Governor's Office of Economic Development was created by 
          Executive Order S-05-10.  The office is supported by 
          contributions from participating state entities.  AB 29 (J 
          Perez) 2011 proposes creating the office in statute.  A similar 
          bill, AB 2734 (J Perez) 2010 was vetoed by Governor 
          Schwarzenegger.

          The proposed amendment would delete the continuous 
          appropriation.